Nigerian manufacturers blame government policies for crippling their businesses

The Nigerian Employers’ Advisory Association (NECA), the Nigerian Manufacturers Association (MAN) and the Nigerian Chambers of Commerce, Industry, Mining and Agriculture Association (NACCIMA) have blamed the hasty policy changes in government, without adequate plans to mitigate the negative effects of the inception of the current government, for the socio-economic crisis the country is currently grappling with.
According to a report in the Vanguard newspaper on Wednesday, all three groups spoke independently on the issue yesterday, with NECA saying that major changes in government policy in 2023 and their negative impact on various sectors are having dire consequences for businesses and the national economy.
The President and Chairman of the Council (NECA), Mr. Taiwo Adeniyi, yesterday in Lagos, at the 67th Annual General Meeting (AGM) of the Association lamented that the combination of the removal of fuel subsidies and the liberalization of exchange rates had led to significant market distortions and increased costs of doing business, leading to reduced economic activities from mid-2023.
He said: “It is no longer a secret that private businesses in the economy are facing countless challenges that are pushing many of them into the survival zone.
”A large number of these private businesses still exist thanks to the enormous determination and perseverance of owners and investors who want to support the economy.
”We praise the Federal Government for its various policies aimed at improving the operating conditions and for establishing the President’s Committee on Fiscal Policy and Tax Reforms.

“As we await the commission’s report, we trust that the recommendations will be business-focused and that the government will move quickly to implement them.”
Despite the continued support from government, Adeniyi listed six major concerns for businesses, including the high cost of doing business due to the depreciation of the naira, higher exchange rates for clearing goods through customs, regulations unfavourable to businesses, the proliferation of provocative taxes/fees and the oversight functions of the National Assembly.
He said: “Private companies are struggling with high production costs due to increased bills for importing foreign materials and raw materials. Before the liberalization of the currency system, N460 was exchanged for US dollars in the official market and about N750/US dollar in the parallel market.
“After the introduction of this policy, the exchange rate rose to N1,600/USD, which significantly increased the cost of imports for the private sector. To address these challenges, we call on the federal government to review the current foreign exchange liberalization policy and adopt a more targeted foreign exchange management procedure that supports domestic production,” he added.
GIK/APA